ASHWINI ,BENGALURU vs. INCOME TAX OFFICER, WARD-5(1)(1), BENGALURU

We have considered the submissions of both sides and perused the material available on record. The brief facts of the case are that the assessee is an individual. For the year under consideration, the assessee did not file its return of income. On the basis of information that the assessee has made cash deposits of Rs. 1,00,15,000 in one or more accounts maintained with Vijaya Bank and time deposits of Rs. 19,75,613 in an account maintained with Vijaya Bank and received interest amounting to Rs. 7,06,344 during the year under consideration, proceedings under section 147 were initiated and notice under section 148 of the Act was issued on 30.03.2022. However, the assessee did not file the return in response to the said notice. Thereafter, the assessee also did not respond to the statutory notices issued under section 142(1) seeking details regarding the deposits in the assessee’s bank account. The assessee was non-responsive even to the show cause notice issued during the assessment proceedings. Accordingly, the Assessing Officer (“AO”) completed the assessment on a best judgment basis under section 144 of the Act on the basis of information available on record. Vide order dated 31.03.2023 passed under section 147 r.w. section 144 of the Act, the AO added the interest received from the Vijaya Bank as income from other sources. Further, the cash deposits of Rs. 1,00,15,000 in the savings account were treated as unexplained money under section 69A of the Act in the Page 3 of 6 absence of any explanation, and the same was added to the total income of the assessee. Similarly, the time deposit of Rs. 19,75,613 was treated as an unexplained investment under section 69C of the Act and added to the total income of the assessee, as no satisfactory explanation was made by the assessee regarding the investments.

In the appellate proceedings before the learned CIT(A), despite the grant of multiple opportunities, the assessee failed to comply with the hearing notices and did not bring any material/evidence in support of its case, contrary to the findings of the AO. Accordingly, the learned CIT(A) upheld the additions made by the AO and dismissed the assessee's appeal. Being aggrieved, the assessee is in appeal before us.

Now, in the present appeal before us, the assessee is duly represented by the learned Authorised Representative (“learned AR”) and wishes to pursue the litigation against the additions made by the AO. During the hearing, the learned AR submitted that, given an opportunity, the assessee will submit all the details in support of its case.

Accordingly, in view of the facts and circumstances as noted above, we deem it appropriate to grant another opportunity to the assessee. Therefore, we restore the matter to the file of the jurisdictional AO for de novo adjudication, with a direction to the assessee to file all the details in support of its claim for necessary verification. We further direct the assessee to fully cooperate in the assessment proceedings and furnish any other information/documents as may be sought by the AO for complete adjudication Page 4 of 6 of the issues involved. Needless to mention, no order shall be passed without affording reasonable and adequate opportunity of hearing to the assessee. With the above directions, the impugned order is set aside, and the grounds raised by the assessee are allowed for statistical purposes. Before concluding, we may also note that, since the matter has been restored to the file of the AO for consideration afresh, all the contentions of the assessee on merits as well as on jurisdiction shall remain open to be raised before the AO.

In the result, the appeal by the assessee, being ITA No. 1664/Bang./2025, is allowed for statistical purposes.

In the result, all appeals by the assessee are allowed for statistical purposes. Order pronounced in the open court on 20-July-2026 Sd/- Sd/- (PRASHANT MAHARISHI) (SANDEEP SINGH KARHAIL) VICE PRESIDENT JUDICIAL MEMBER Bangalore, Dated, the 20-July-2026. *VM* Page 5 of 6 Copy to: ASHWINI , 1 # 58, VICTORIA HOSPITAL QUARTER,, BENGALURU-560002, KARNATAKA INCOME TAX OFFICER, WARD- 5(1)(1), 2 BMTC BUILDING, 80 FEET ROAD, 6TH BLOCK, KORAMANGALA, BENGALURU-560095, KARNATAKA 3 THE PCIT / CIT,